On January 2, 2020, Theseus Company purchased machinery from Zethus Company incurring the following cost: Purchase price Freight cost P1,000,000 120,000 80,000 Insurance while in transit Installation cost 150,000 Assessment by City government* 50,000 "The assessment by the city government is due to poor planning and noncompliance with the government's installation process of the machinery in the area. The management estimates that the machinery will be used for a period of ten years with no residual value. At the end of 2020, the following information is made available: a. The asset can be sold for P1,270,000 with cost to be incurred of P50,000 to disposed the asset. b. The net cash flows expected for the asset with its continuing use is P200,000 per year. c. Discount rate applicable is 12%. At the end of 2021, the management estimates the following information: a. The net realizable value of the asset on this date is P1,000,000 with P40,000 disposal cost. b. The value in use is based on the annual cash flows of P205,000 at 11% discount rate. On December 31, 2022, the management revised its estimate of useful life to be 8 years from the date of acquisition and neither indication of impairment nor reversal of impairment is expected. At the end of 2023, the asset can be sold for P900,000 on which commission of 2% based on selling price is to be paid to the broker. Determine the following as a result of your audit: Assuming the company's policy is to account for this asset under cost model: 1. How much is the amount of machinery - net reported in in its statement of financial position as of December 31, 2021? Chapter 5: Audit of Fixed Assets 2. How much is the amount of impairment loss reported in its 2021 statement of comprehensive income? 3. How much is the amount of machinery - net reported in in its statement of financial position as of December 31, 2022? 4. How much is the amount of depreciation expense reported in 2023 statement of comprehensive income? 5. How much is the amount of gain on recovery (impairment reversal) reported in 2023 statement of comprehensive income? 6. How much is the amount of machinery - net reported in in its statement of financial position as of December 31, 2023? Assuming the company's policy is to account for this asset under revaluation model: 7. How much is the amount of machinery - net reported in in its statement of financial position as of December 31, 2021? 8. How much is the amount of impairment loss reported in its 2021 statement of comprehensive income? 9. How much is the amount of machinery - net reported in in its statement of financial position as of December 31, 2023? 10. How much is the amount of depreciation expense reported in 2023 statement of comprehensive income? 11. How much is the amount of gain on recovery (impairment reversal) reported in 2023 statement of comprehensive income? 12. How much is the amount of revaluation surplus reported as component of equity as of December 31, 2023? 13. How much is the amount of machinery - net reported in in its statement of financial position as of December 31, 2023? m to